Search result for:  H1 H2

"So each setup – L1, L2, H1, H2 – is a combination of two candles, interpreted within the context visible to the left of the chart. I believe that understanding this on the chart is probably the most important part of Price Action."

Thats how I understand it as well. The bars after H1 & H2 made a new high after the pull back in the bull trend. H2 is interesting. It didnt have good follow through at first but it did have a Micro Triangle which signaled a breakout in either direction.

Video 9A (Pullback & Bar Counting; Timestamp 20:27) does a good job explaining this. It was frustrating for me as well when starting out. My biggest problem is that I wanted everything absolute and clear when in reality what was more important was learning the concept. If you can understand the concept then even if the chart is label wrong youll still be able to understand where he is going. H1 (High 1): The first bar that makes a new high after a pullback in a bull trend. It's often a buy setup. H2 (High 2): The second attempt to go higher, often better than H2 because it has more confirmation. L1 (Low 1): The first bar that makes a new low after a pullback in a bear trend. It's often a sell setup. L2 (Low 2): The second attempt down, often better than L1 because it has more confirmation.

That's how I understand it too. But I wouldn't place a buy stop over a doji, that's just me.

Could someone take a look at what I marked and let me know if I’m understanding it correctly? The H1 was triggered on a BUY because the next candle moved above the high of the H1 candle that I marked on the chart. After a strong bull SPIKE, we have the first PULLBACK, and this is considered an H1 because the following candle went above the high of that DOJI. H2 is a BULL candle with a long tail on the bottom. BUY above its high. When setting up the trade, we don’t know yet if it will be an H2 until the price moves above its high. The H2 candle is a Bull ba ...

This concept has been very difficult for me to understand as well. I found Al's glossary which makes things much clearer for me: Glossary: H1 & H2 from Al's glossary: high 1, 2, 3, or 4A high 1 is a bar with a high above the prior bar in a bull flag or near the bottom of a trading range. If there is then a bar with a lower high (it can occur one or several bars later), the next bar in this correction whose high is above the prior bar’s high is a high 2. Third and fourth occurrences are a high 3 and 4. A high 3 is a wedge bull flag variant. L1 & L2 Definition from Al’s glossary: low 1, 2, 3, or 4A low 1 is a bar with a low below the prior bar in a bear flag or near the top of a trading range. If there is then a bar with a higher low (it can occur one or several bars later), the next bar in this correction whose low is below the prior bar’s low is a low 2. Third and fourth occurrences are a low 3 and 4. A low 3 is a wedge bear flag variant.

I just bought the course and having this pointer out of sync issue with the first video. Do all the videos have this problem, or just this first one? The H1 H2 stuff is impossible to follow with the pointer out of sync because when he says “this bar,” I have no idea which bar he’s talking about. Wondering if it’s just this video or something I’ll need to solve to be able to use the course. Thanks.

H1, H2, etc. and L1, L2, etc. are simply attempts to resume the trend after a pause or PB. That's why they are a good setup in a strong trend. Most attempts to reverse trends fail and become with trend flags. Normally you can see it but sometimes it might only be visible on a smaller time frame. For example in a PB in a bull trend, you might see two bear bars, a doji then two more bear bars. That doji might be the first attempt to resume the bull trend even if it doesn't go above the prior bear bar. On a smaller TF, the tails on the doji might be seen as up-down price action.

That clarifies a lot Thank you

Hi Wei, A bar with a high at or below the high of the prior bar is a H1 signal, It does not mean that this signal is going to trigger. If the next bar doesn't go above the signal, then it becomes the new H1 signal, and it only becomes an actual H1 when the market finally goes above the prior bar.

Wei - check it out my 2c - could be wrong Attachment : image.png

Thank you, that's helpful.

Hs & Ls are simply attempts to resume the trend after a pullback. Sometimes they are very clear and sometimes they can be confusing. One way to clarify things when you are confused is to look at a smaller time frame. The pattern will often be much easier to see on a 1 minute chart. Don't try to trade the smaller time frame, just use it to see patterns that might be unclear on the 5 minute chart.

Hi, I am aware this question has been asked before, but somehow I have not get it Based on Statement 1) high 1, 2, 3, or 4A high 1 is a bar with a high above the prior bar in a bull flag or near the bottom of a trading range. If there is then a bar with a lower high (it can occur one or several bars later), the next bar in this correction whose high is above the prior bar’s high is a high 2. Third and fourth occurrences are a high 3 and 4. A high 3 is a wedge bull flag variant. Statement 2) However, based on bonus video 06 (Minute 15:08) Attachment : question_to_forum.png It mentioned that if High (H) of bar is at or below H of prior bar, it is a High 1 buy signal bar (H1 bull Flag) It seems that Statement 1 and Statement 2 are contradictory Can someone kindly help it to clarify ? Thanks

For those that I'm sure will continue to come here trying to figure this out as I have, the link in the 2nd post is indeed helpful. I was thinking I would just summarize it here to make it more accessible for people, but there is some good back and forth on the thread. I had to wait overnight for access to the other forum, but the info there is actually helpful.